Intel set to lay off around 10,000 workers despite getting $2.2B in CHIPS Act funds under Biden

Struggling chip giant Intel is reportedly preparing to slash up to 20% of its global workforce next month — despite the company receiving more than $2 billion in federal funding under former President Biden’s signature CHIPS Act.The scale of the layoffs, amounting to around 10,000 workers, was disclosed in an internal email viewed by The Oregonian/OregonLive and confirmed by four Intel employees who spoke to the online news outlet.“These are difficult actions but essential to meet our affordability challenges and current financial position of the company.It drives pain to every individual,” Naga Chandrasekaran, Intel’s vice president of manufacturing, reportedly wrote in the memo sent to employees on Saturday.The anticipated reductions are scheduled to begin in weeks and will reportedly affect Intel Foundry, the company’s internal manufacturing division that specializes in producing semiconductors for external customers.The unit includes a wide spectrum of jobs — from factory technicians to engineers and researchers who design future generations of chips.Intel was awarded $7.9 billion in federal subsidies last year to support US-based semiconductor manufacturing under the CHIPS Act.

The company received $2.2 billion before the remainder was frozen pending a review by the newly-elected Trump administration.The looming cuts come on top of the 15,000 jobs across its global operations last year — after Intel was awarded the CHIPS Act funds — amid declining demand for PCs and servers and setbacks in developing high-end chips for artificial intelligence applications.The company has already postponed the opening of its $10 billion Ohio factory until 2030, citing insufficient demand.Intel shares have dropped nearly 30% over the past 12 months, trading at around $21.50 on Wednesday.It ousted CEO Pat Gelsinger in March and brought in semiconductor veteran Lip-Bu Tan, who has emphasized streamlining operations, cutting bureaucracy and accelerating innovation...